Aussie dlr near 2024 high before RBA; yen drifts as Ueda awaited
By Kevin Buckland
TOKYO, Sept 24 (Reuters) -The Australian dollar hovered close to its highest level of the year on Tuesday, with the central bank set to hold policy steady later and traders focussed on any hints of potential near-term easing.
The yen idled in the middle of its range against the U.S. dollar this month ahead of a speech by Bank of Japan Governor Kazuo Ueda that could provide more clues about the pace of interest rate hikes, after the central bank left policy unchanged last week and signalled no rush to tighten further.
The euro attempted to find its feet following a nearly 0.5% tumble overnight as weak business activity surveys pointed to additional rate cuts, while sterling tracked close to a 2-1/2-year peak with the Bank of England last week striking a much less dovish posture than the Federal Reserve or European Central Bank.
The Aussie AUD=D3 edged down 0.1% to $0.68305 as of 0007 GMT, after it jumped 0.45% in the previous session and touched $0.6853 for the first time since Dec. 28.
The RBA is widely expected to keep rates steady on Tuesday, but economists and traders have taken opposing views of the potential for lower rates later this year. Of 44 economists polled by Reuters, only four predict a reduction by end-December, whereas traders put the odds at roughly 60% for a cut.
Analysts at Commonwealth Bank of Australia wrote in a client note that they "expect the RBA's comments to be hawkish - albeit marginally less hawkish than in August - helping guide AUD higher," with a test of $0.69 likely this week, a level last seen in February of last year.
The Aussie would also benefit from any stimulus announcement from China, they said, with People's Bank of China Governor Pan Gongsheng due to hold a news conference later on Tuesday on the topic of financial support measures.
The yen edged up to 143.45 per dollar JPY=EBS, but remained close to the centre of its September range of 147.20 to 139.58, a more than one-year peak reached on Sept. 16.
The yen has retreated amid waning bets for aggressive tightening by the BOJ, particularly after governor Ueda struck a cautious tone of Friday, saying the central bank would spend some time monitoring global growth risks.
The euro EUR=EBS was little changed at $1.1107. A survey compiled by S&P Global showed euro zone business activity sharply contracted this month as the bloc's dominant services industry flat-lined, while a downturn in manufacturing accelerated.
Sterling GBP=D3 was flat at $1.33495. The BoE kept rates unchanged last Thursday, with its governor saying the central bank had to be "careful not to cut too fast or by too much".
World FX rates https://tmsnrt.rs/2RBWI5E
Reporting by Kevin Buckland
Editing by Shri Navaratnam
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
